Issue

Syensqo currently has over ten different labelling applications. Some of them, such as SAP GLM (Global Label Management), are actively used across multiple GBUs, including Aroma Performance, Composite Materials and Technology Solutions. Other applications, however, are either used by only one GBU or are no longer in use. 

With the transition to SAP S/4HANA, it is important to review the current labelling applications and develop a strategy to help Syensqo streamline the labelling processes, ensure the label consistency, improve the operation efficiency and reduce maintenance costs.

Recommendation

It is recommended to adopt a strategy of standardizing and simplifying labelling applications across all Syensqo businesses using the following approach:

• Assessment and Inventory: Identify and catalog the current labelling applications with  understanding the functionalities, user base, and integration points.

• Requirements Definition: Engage with stakeholders from various GBUs to understand their labelling needs and preferences during detailed design phase. Make sure the requirements are clearly documented, and the labelling aligns with ERP Rebuild solution designs. 

• Standardization and Simplification: Evaluate how each application is used and its value to different business units. Look for common labelling requirements across different GBUs to standardize processes, reduce complexity, and implement the unified labelling application(s) across Syensqo.  

The selection of the exact labelling application(s) will be made in the Detailed Design phase, following the completion of the relevant analysises and tasks required by the above approach.

Background & Context

The table below describes the overview of the current labelling related applications identified in Syensqo.

Note:

The abbreviations in the above matrix columns stand for the following GBUs:

AP - Aroma Performance, CM - Composite Materials, NC - Novecare, SP - Specialty Polymers, TS - Technology Solutions   

Assumptions

• The selected labelling application(s) can be closely integrated with SAP S/4HANA.

• The selected labelling application(s) adhere to regulatory requirements relevant to Syensqo industry, and allows for easy updates to accommodate new regulatory requirements or changes in labelling standards.

Constraints

System Limitations: The unified labelling application must support all required labeling functions and features previously covered by various third-party applications. It can be challenge to replicate the same functions. Therefore, it is important to identify and address any gaps that require custom developments to fill. 

Regulatory Compliance: Ensuring that the unified labelling application(s) meets all regulatory requirements and industry standards is critical. There may be a need to use different labelling applications for the regulatory and non-regulatory labels. 

User Adaptation: Users accustomed to different labelling applications may face difficulties adapting to a new, standardized application. Comprehensive training will be necessary to ensure that all users are proficient in the unified labelling application(s).

Scalability: Ensure that the standardized labeling solution can scale with future growth and adapt to new requirements or technologies.

Impacts

Implementing a standardized and simplified labelling solution in a SAP S/4HANA project involves several potential impacts, both positive and challenging.

Operational Efficiency

• A unified labelling solution can streamline labelling processes across different business operations, including logistics, warehouse management, EHS and transportation etc.

• A unified solution ensures consistency in label formats, designs, and compliance across different departments and locations, which helps reduce redundancy and improve operation efficiency.

Label Consistency

• Label formats and structures may vary among different label applications. Mapping and transforming data from these diverse formats into a consistent format for the unified application(s) can be complex.

• If historical labelling information in multiple applications need to be migrated to the unified application(s), ensure that relevant historical information remains accurate and accessible.

Cost Implications

• Initial costs for implementing a unified labelling solution can be significant, including software, integration, and training expenses etc.

• Over time, standardization and simplification can lead to long-term cost savings through reduced maintenance, support, and licensing fees for multiple applications.

Change Management

• There will be a learning curve and adaptation period for end-users not only requiring to change over to the unified labelling application(s), but also for those currently using the unified application(s). Comprehensive trainings are required as well as updating documentation and standard operating procedures (SOPs) accordingly.

• Consolidate from multiple applications to a unified system can be disruptive and time-consuming. A support framework should be established to assist users during the transition and address any issues promptly.

• Stay informed about advancements in labeling technology and consider periodic reviews to incorporate new capabilities or improvements.

Business Rules

Options considered

Option A: Standardize Labelling Applications Across Company

Use a single labelling tool for all the labels across company.

Option B: Standardize by Regulatory Requirements

Use a central labelling tool for Regulatory Labels and another one for Non-Regulatory Labels

Option C: Keep All the Active Labelling Applications

Keep all the labelling tools currently in use.

Evaluation

	Option A	Option B
Efficiency	Reduces the number of tools and processes, leading to more streamlined operations and simplified processes. Eliminates redundant systems and processes, reducing duplication of effort Con	Pro Pro
Data Accuracy	Single Source of Truth: Consolidation into a single system helps ensure data accuracy and consistency across the organization.
Cost Saving	Fewer systems to maintain can lead to lower overall maintenance and support costs. Standardizing may reduce the number of software licenses required.
Standardization	labeling solution provides APIs or middleware for seamless integration with SAP S/4HANA. A standardized system can offer better integration with SAP S/4HANA, improving data flow and operational efficiency. Con	Pro Pro
Data Synchronization	support real-time data synchronization between SAP and the labeling system. Con	Con
Compliance and Customization	be able to handle compliance requirements and support customization as needed for different types of labels.	Con
Scalability and Performance	can scale with your business needs and maintain high performance
Change Management Efforts	Employees accustomed to existing tools may resist transitioning to a new system, affecting productivity initially. Transition Period: Migrating from multiple tools to a standardized system can be disruptive and time-consuming.
Flexibility	One-Size-Fits-All: A standardized system may not be flexible enough to handle specific or unique labeling requirements that the legacy systems addressed.

By standardizing the labeling process and applications, Syensqo aligns with the principles of simplification and efficiency, reduce the complexity of your IT landscape, and potentially lower costs while maintaining compliance and improving operational effectiveness.

See also

Change log

Workflow history